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ACCA F3 Gross Profit

During the year ended 30 June 20X9 joy purchased $111,060 of inventory for resale. Over the year, inventory held fell by $4,620.

1. If she used a mark up of $10%, what was the gross profit for the year?

2. If she used a gross profit of 10%, what was the gross profit for the year?.

Suggested solutions

PURCHASE	111,060
PLUS DECREASE IN INVENTORY	4,620
=COST OF SALES	115,680
MARK UP %	10
ANSWER 10 % of 115,680	11,568
GROSS PROFIT %	10
cost of sale/ (1 -10/100) * 10/100	12,853

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